To encourage economic expansion and produce a return on investment (ROI) for market players, economic resources should be distributed efficiently.
What is the role of the Financial System?
The financial system assists in matching one person's investment with another person's savings. The bond and stock markets are two markets that are a part of the US financial system. Stocks are a kind of partial ownership in a company, whereas bonds are documents of debt.
Two markets that are a component of the financial system in the American economy should be named and described.
- The bond and stock markets are two markets that are a part of the US financial system. Stocks are a kind of partial ownership in a company, whereas bonds are documents of debt. Banks and mutual funds are two examples of financial intermediaries.
Cite two financial middlemen by name.
- Banks and mutual funds are two examples of financial intermediaries. For the purpose of making loans to borrowers, banks accept deposits from those who desire to save money. In order to purchase stocks and bonds, mutual funds offer shares to the general public.
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